Warren Buffett's Crypto Criticism Clashes With Berkshire Hathaway's Quiet Investments

The world’s most famous investment skeptic has a complicated relationship with digital assets. Warren Buffett has been vocal about his distrust of cryptocurrency for years, yet his company Berkshire Hathaway appears to be operating on a different playbook. While Buffett himself maintains that crypto is fundamentally flawed, his firm’s strategic moves suggest a more nuanced approach to the digital currency space may be taking shape.

The “Rat Poison” Years: When Buffett Drew His Line

Warren Buffett’s most quoted critique came during Berkshire Hathaway’s 2018 shareholder meeting, when he famously declared bitcoin “probably rat poison squared.” His longtime partner Charlie Munger wasn’t more diplomatic, dismissing crypto trading as outright misguided behavior. These weren’t casual remarks—they represented a principled stance that the legendary investor has reinforced repeatedly since then.

That same year, Buffett escalated his position by warning other investors away from the space entirely. “In terms of cryptocurrencies generally, I can say with almost certainty that they will come to a bad ending,” he told CNBC, leaving no room for ambiguity about his conviction that the sector was destined for collapse. Yet despite this absolutist position, he added an intriguing caveat: if given the opportunity, he’d purchase five-year put options on every cryptocurrency—a hedge strategy that paradoxically revealed he wasn’t entirely dismissing the possibility of crypto’s ongoing relevance.

The Berkshire Hathaway Paradox: Indirect Crypto Exposure

While Buffett hasn’t softened his public stance on bitcoin itself, his company’s investment portfolio tells a more complex story. Beginning in 2021, Berkshire Hathaway deployed substantial capital into Nu Holdings, a Brazilian digital banking company, initially investing $500 million followed by an additional $250 million. The significance lies not in the amount relative to Berkshire’s $1 trillion valuation, but in the nature of the target: Nu operates its own cryptocurrency platform, giving Buffett’s firm genuine exposure to the digital currency ecosystem he publicly ridicules.

The exposure doesn’t end there. Berkshire Hathaway maintains a significant stake in Jefferies Financial Group Inc., a diversified financial services company that, in turn, holds a major position in iShares Bitcoin Trust, the world’s largest spot Bitcoin exchange-traded fund. These aren’t accidental holdings—they represent a calculated portfolio strategy that channels crypto influence into Berkshire’s returns without requiring Buffett to personally endorse the asset class.

Recent Market Dynamics and Buffett’s Unwavering Skepticism

The crypto landscape shifted dramatically when President Donald Trump signaled support for digital currency, injecting mainstream legitimacy and attracting institutional investors. Bitcoin surged to unprecedented levels, capturing headlines and attention. Yet Buffett remained unmoved. During a 2022 Berkshire Hathaway shareholders meeting, he doubled down on his criticism, using stark language to explain his position.

“If you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it?” he stated bluntly. “It isn’t going to do anything.” The statement encapsulated his fundamental objection: cryptocurrency produces no cash flow, generates no earnings, and serves no productive economic function. From his perspective, the asset’s value depends entirely on finding the next buyer willing to pay more—a model he views as speculation rather than investment.

The Emerging Gap Between Philosophy and Practice

Warren Buffett’s crypto skepticism remains intellectually consistent: he believes digital assets lack intrinsic value and serve no practical purpose in his investment framework. Yet Berkshire Hathaway’s strategic positioning in companies tied to bitcoin and digital finance suggests the organization recognizes the permanent role crypto may play in modern markets. Whether this represents a subtle generational shift within Berkshire’s leadership, a pragmatic hedge against being wrong, or simply a compartmentalized investment approach separate from Buffett’s personal convictions remains unclear. What’s evident is that despite Buffett’s vocal criticism, his company continues to find strategic ways to participate in crypto’s expansion—perhaps hedging against the very scenario his public statements suggest he expects.